Obama to add 25 billion to auto loan

WASHINGTON – Michigan’s congressional delegation asked President Barack

In a letter, the lawmakers also lobbied to keep $1 billion in grants and $3.3 billion in loans for battery development for electric and hybrid vehicles in the bill. The House is expected to take up the $850 billion bill next Wednesday, with a goal of passing the bill through Congress by Feb. 16.

The $25 billion in loans through the U.S. Energy Department would come on top of $25 billion already set aside for automakers and parts suppliers to build more fuel-efficient models. The government has received more than 70 applications for the current $25 billion, and Detroit’s automakers have said they were counting on the loans to help them pay for retooling costs.

Lawmakers said given the state’s lengthy recession and 10.6% unemployment rate in December, it should receive a larger share of federal unemployment aid.

“We feel it is critically important that additional funding be directed to those states that need it the most – those with the highest unemployment rates,” the lawmakers said.